[14:06 EUR/USD: Retracements, Stops Eyed] Boston, November 4: EUR/USD is running
into some two-way traffic above the 1.1480 level, with the rally stalling out at
1.1486 so far. Dealers are eying the 1.1500 level (38.2% of 1.1620/1.1427) as
well as stops above 1.1510. US equities are creating a slight drag on EUR/USD so
far this morning as S&P futures trade about 3 points below fair value,
indicating a soft opening is expected. Bids are seen at 1.1455 and 1.1430 on
dips.
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Latest
14:58 GMT November 4] Cable has strung together a half decent recovery having
based in Asia at 1.6675. The move to 1.6775 has been orderly but nonetheless has
eased the oversold condition of the market. The sterling market had clearly over
factored this week"s main event risk. Speculation of a 1/4-point hike, some see
a half, has been a major supporting factor for the pound recently. Cable put on
over five big figures between the middle of October and the end of the month as
the yield card was played. What we are seeing now is a market that has run out
of demand. Throw in some strong U.S data releases into the equation and a sharp
cable pullback was the Monday result. [GBP/USD] fell 220-points last session and
a further 90-points to 1.6675 overnight from where today"s rebound took off
from. Still feel there is more downside risk this session as New York looks to
sell any up-tick. 1.6675-80 overnight low safe but a bear close the risk as the
good start gives way to losses. [EUR/GBP] has been quiet on the main but fresh
demand to 0.6855 is clearly adding to the cable sell. Talk of European names
buying the EUR in the 0.6840"s.
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